How do small formal and informal firms in Egypt compare? An analysis of firm characteristics and implications for formalization efforts.

ABSTRACT: Formalizing firms can potentially increase the tax base, expand safety and social protections for workers, create good jobs, and promote firm growth. However, the costs and processes of formality may be too challenging for some firms to bear. Thus, informal firms may not be able to survive the transition to formality, and attempts to expand formality through more intensive enforcement may be harmful and counterproductive to job creation and growth. This paper investigates the potential for currently informal firms to formalize in Egypt. The paper compares the characteristics of formal and informal micro and small nonagricultural firms and identifies the extent of similarities and potential for formalization. The analysis finds that, beyond firm size and whether the firm operates in a fixed

SUBMITTER: Krafft C 

PROVIDER: S-EPMC12360632 | biostudies-literature | 2024 Aug

REPOSITORIES: biostudies-literature